eflexHSA

Easy to Open

• Online enrollment creates a virtually paperless environment for employees
• No minimum balance is required when opening an eflexHSA

Easy to Use

• It's a seamless solution: employees have complete access to all their benefits accounts (e.g., HSA and limited FSA) on one platform
• A single login gives employees online access to their HSA as well as their investment options
• Employees can access their HSA dollars by making a secure, online request for distribution or by using their debit card

Easy to Manage

• An array of mutual funds, including an interest-bearing account, gives employees competitive investment choices that are attractive to both novice and experienced account holders
• HSA contributions are automatically swept into the employees' investment accounts when they meet the necessary cash account balance; no need to manually move funds between accounts
• HSA deposits are held by HealthcareBank, a division of State Bank & Trust, a $4 billion financial institution and member FDIC

HSA Conditions

• The employee must participate in a qualifying high deductible health plan
• The HSA is "owned" by the employee
• The employee decides how much to contribute based on his/her out-of-pocket expenses
• Employer and employee contributions combined may not exceed the IRS maximum contribution
• No claims substantiation; claim substantiation is maintained by the employee
• Eligible claims may be reimbursed at the point of purchase or at a later date as determined by the employee
• Anybody may contribute to an employee's HSA; typically, 50 percent of employers contribute to employee HSAs.
• Employer contributions may be made in one lump sum at the beginning of the plan year or pro-rated throughout the year.
• HSA funds are not available to employees until they are in their accounts
• HSA funds may be used for the employee, spouse and dependent children.

Tax Treatment
There are two ways to receive a tax credit for HSA contributions: 1) The employer may pre-tax employee contributions through a Section 125 (i.e., POP or FSA); 2) The participant may use an above-the-line deduction when filing taxes. If the tax credit is through a Section 125, the document must state it accordingly. A self-employed individual of an S Corporation or LLC cannot pre-tax an employee HSA contribution through a Section 125.

Investment Options
A unique feature of the HSA is the ability to invest in stocks, bonds and mutual funds. We recommend that employees discuss investment options with a bank or professional advisor.

Stacked HSA and FSA or HRA Debit Card
Technology allows one debit card to be used for the HSA, Limited Purpose Flexible Spending Account (FSA) and Limited Purpose Health Reimbursement Arrangement (HRA). The eflex Card is "stacked" according to the plan design. Appropriate merchant codes are attached to the card. We handle enrollments and terminations. Because we communicate HSA information directly to the bank, we control how the cards are used and generated.